Real business cycle theorists are critical of monetarist reduced-form evidence because they believe
A) money is the most important cause of changes in aggregate demand.
B) there is reverse causation from the business cycle to money.
C) there is reverse causation from money to the business cycle.
D) business cycles do not exist.
B
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The long-run effect of a decrease in the growth rate of the quantity of money is a
A) higher real interest rate. B) lower nominal interest rate. C) higher inflation rate. D) higher nominal interest rate. E) lower real interest rate.
Education leads to external benefits because
A) the people who become better educated get better jobs. B) better educated people commit fewer crimes. C) better educated people are less lazy. D) little pollution is created when educating people. E) better educated people are more productive.